The government is considering imposing a General Sales Tax (GST) on petroleum or increasing the current rate of levy to meet the International Monetary Fund’s (IMF) demand to restore 18% GST on petrol, as per sources. It is proposed to increase the levy on petroleum from Rs60 to Rs100 per liter in the budget of the new financial year. Currently, Rs60 per liter is levied on petrol and diesel, generating an estimated revenue of Rs 950 billion per year. The GST on petroleum products has remained at zero levels since March 2022, and it was proposed to be 18% in the budget.

The government has announced that it will maintain the price of petrol while decreasing the price of high-speed diesel by Rs 1.77 per litre. The price of petrol will remain unchanged at Rs 279.75 per litre, while high-speed diesel’s price has decreased to Rs 285.56 per litre. The decision aims to provide stability in domestic fuel rates amidst fluctuations in global oil prices. The Ministry of Finance regularly reviews the prices of petroleum products to align them with international market trends while considering the impact on consumers and the economy. There has also been a reduction of Rs. 2.12 per liter in the price of light diesel oil and Rs. 1.35 per liter in the price of kerosene, as per sources from the Ministry of Finance.

Please, subscribe to the YouTube channel of republicpolicy.com